- USDTHB: moving in the range 36.14-36.295 this morning supportive level at 36.10 resistance level at 36.40
· SET Index: 1,381.8 (-1.01%), 31 Oct 2023
· S&P 500 Index: 4,193.8 (+1.84%), 31 Oct 2023
· Thai 10-year government bond yield (interpolated): 3.24 (-0.67 bps), 31 Oct 2023
· US 10-year treasury yield: 4.88 (+0.00 bps), 31 Oct 2023
- Wages boost US labor costs; house price inflation picks up
- Euro zone Q3 GDP growth weaker than expected
- Euro zone inflation drops to lowest in over two years
- Yen on intervention watch after hitting 1-year low on BOJ disappointment
Wages boost US labor costs; house price inflation picks up The Employment Cost Index (ECI), the broadest measure of labor costs, rose 1.1% last quarter after increasing 1.0% in the April-June period. Economists polled by Reuters had forecast the ECI would rise 1.0%. Labor costs increased 4.3% on a year-on-year basis, the smallest gain since the fourth quarter of 2021, after advancing by 4.5% in the second quarter. Growth in annual compensation is gradually slowing after peaking at 5.1% last year, in line with some easing in labor market conditions. It, however, remains well above the pre-pandemic pace. House prices increased 0.6% in August, driven by an acute shortage of previously owned homes. In the 12 months through August, house prices accelerated 5.6% after advancing 4.6% in July.
Euro zone Q3 GDP growth weaker than expected Euro zone economic growth was weaker than expected in the third quarter with gross domestic product contracting slightly quarter-on-quarter and the year-on-year growth rate slowing sharply. The European Union's statistics office Eurostat said GDP in the 20 countries sharing the euro fell 0.1% quarter-on-quarter in the July-September period for a 0.1% year-on-year rise. Economists polled by Reuters had expected a 0.0% quarterly growth and a 0.2% year-on-year gain. Eurostat data showed 0.1% quarterly growth in France, 0.3% in Spain and 0.5% in Belgium, but that failed to offset a 0.1% quarterly slump in Germany, no growth in Italy, and contractions in Austria, Portugal, Ireland, Estonia and Lithuania. The euro zone economy is facing strong headwinds from high inflation and record high interest rates and slowly tightening fiscal policy.
Euro zone inflation drops to lowest in over two years Euro zone inflation dropped to its lowest level in over two years in October, as energy prices fell and the high interest rates set by the European Central Bank dampened demand. The data seems likely to cement the market's view that the ECB is done with raising rates as part of its fight against high inflation, which had been supported by more expensive fuel, supply disruptions and a recovery in demand following the COVID-19 pandemic. Prices grew by 2.9% year on year in October, the slowest pace since July 2021, from 4.3% a month earlier, according to Eurostat's flash estimate. Inflation started falling sharply last month as the massive increase in energy prices recorded a year earlier impacted the annual comparison.
Yen on intervention watch after hitting 1-year low on BOJ disappointment The 10-year government bond yield (interpolated) on the previous trading day was 3.24, -0.67 bps. The benchmark government bond yield (LB31DA) was 3.22,+0.00 bps. Meantime, the latest closed US 10-year bond yields was 4.88, +0.00 bps. USDTHB on the previous trading day closed around 36.02. Moving in a range of 36.14-36.295 this morning. USDTHB could be closed between 36.10-36.40 today. Traders remained on edge over any potential intervention in currency markets by Japanese authorities, as the yen plummeted to a one-year low after the Bank of Japan disappointed markets with only minimal changes to its yield curve control policy. The Japanese currency slid 1.7% on Tuesday to 151.77- its weakest level against the dollar since late-October 2022. But the yen rose 0.2% on Wednesday morning to 151.40, recovering some ground after top currency official Masato Kanda said that the government was ready to act against “one-sided” moves in currency markets. Kanda’s comments were the latest verbal warnings from the Japanese government over speculation against the yen. But they carried more weight this time around, given that the yen was close to the threshold that had triggered over $60 billion worth of intervention by the Japanese government in 2022.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
